Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Japan’s steelmaker, Tokyo Steel kept its finished steel product prices unchanged for the fourth consecutive month, as it awaited recovery of demand in the domestic and global steel markets, according to the company. 


The prices for steel bars, including rebar were kept at JPY62,000/mt ($563/mt) and H-shaped beams at JPY83,000/mt for February deliveries, unchanged from mid-October. The demand for finished steel in Japan was subdued in January, ahead of the Chinese Lunar new year holidays in China.  


The steelmaker anticipates an uptick in overseas steel prices after Chinese holidays in the domestic and export markets. 


Tokyo Steel also kept its ferrous scrap purchase prices unchanged for over a month. The previous price revision was made on Dec 12 and the company’s purchase price for H2 is at JPY25,000/mt delivered to Tahara, Kyushu and Utsunomiya plants. Tokyo Steel’s procurement prices for H2 delivered to Okayama and Takamatsu are at JPY23,500/mt and JPY22,500/mt, respectively. 


The spread between rebar and ferrous scrap prices remained flat at JPY37,000/mt at its Utsunomiya plant, in the month from December. 


In January, Japan’s domestic finished steel and ferrous scrap consumption lowered amid labour shortage and delays in construction projects. Despite higher raw material and transportation costs on seasonal issues, the steelmaker held prices flat instead of raising them.

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